ATM Trucking Incorporated v. Buencamino
REITERATIONFacts
The Antecedents: In the evening of May 21, 1980, Doctor Librado Santos was killed when the car he was riding bumped a cargo truck of ATM Trucking Incorporated, which was a traffic hazard on the expressway. Doctor Santos' heirs sued ATM Trucking for damages. Summons was served on Elsa Soza, a clerk whom the sheriff erroneously thought was the corporate secretary. Procedural History: For failure to answer, ATM Trucking was declared in default, and the plaintiffs presented their evidence ex parte. The lower court rendered judgment ordering ATM Trucking to pay damages. ATM Trucking filed a petition for relief from judgment, alleging invalid service of summons and good defenses. The lower court initially set aside its judgment and allowed ATM Trucking to file an answer. However, upon reconsideration, the lower court granted the motion, finding that Elsa Soza could be regarded as an "agent" and that the service was valid. The Petition: ATM Trucking assailed the order of October 15, 1982, by petition for certiorari, treated as an appeal.
Issue(s)
Whether the service of summons on Elsa Soza, a clerk, was valid service on ATM Trucking, Incorporated. Whether the lower court erred in setting aside its order granting relief from judgment.
Ruling
The Supreme Court reversed and set aside the lower court's order of October 15, 1982, and affirmed its order of February 1982, granting relief from judgment. It directed the lower court to receive the evidence of ATM Trucking Incorporated.
Ratio Decidendi
On the validity of the service of summons: The Court held that the service of summons on Elsa Soza, a mere clerk, was not valid service on ATM Trucking, Incorporated. Section 13, Rule 14 of the Rules of Court provides that service on a corporation may be made on its president, manager, secretary, cashier, agent, or any of its directors. Elsa Soza could not be regarded as an "agent" of the corporation; she was a mere clerk. Service on a mere employee or the housemaid of the general manager is insufficient. The purpose of the rule is to ensure that the corporation receives prompt and proper notice of the action, or that the summons is served on a representative integrated with the corporation who will know what to do with the legal papers. Therefore, ATM Trucking was denied due process. On the propriety of granting relief from judgment: Given the invalidity of the service of summons, ATM Trucking was indeed denied due process. Fundamental fairness demands that it be heard and allowed to present its evidence. The initial order granting relief from judgment was proper, and the subsequent order setting it aside was erroneous. The Court directed the lower court to proceed with receiving ATM Trucking's evidence.
Main Doctrine
Service of summons on a mere clerk of a corporation, who is not an agent or officer authorized to receive such process, is invalid and constitutes a denial of due process, rendering a default judgment void.